A USDA loan is a zero money down mortgage for people who want to buy in eligible rural areas. This is a good option for people who don’t qualify for a traditional mortgage and also don’t want to live in an urban area.
Do you qualify for a USDA loan?
To qualify for a USDA-backed mortgage, you need to have U.S. citizenship, a dependable income of at least 24 months, credit history without collections in the last 12 months, and a monthly payment that’s 29% or less of your monthly income.
Monthly debt ratio also cannot exceed 41% of your income but the USDA will take applicants into consideration with higher debt ratios if they have a FICO Score Credit Score from 680 to 620.
If you want to see if you qualify for a USDA loan, give the team at Peak Financial a call today.